Shares of Facebook Inc (NASDAQ:FB) are down more than 5 percent, but analysts at Topeka Capital Markets say investors should buy into the stock’s weakness right now. They say the social media giant shows great promise in revenue increases through its Gifts feature and other revenue streams.
Facebook Inc (NASDAQ:FB) shares are down more than 5 percent after a rough end to the trading week. After opening at more than $28 per share, the stock is now trading at less than $27 per share. Analysts at Topeka Capital Markets are bullish on the stock right now for several reasons.
Analyst Victor Anthony has reiterated Topeka Capital’s Buy rating in spite of the pressure that shares of Facebook Inc (NASDAQ:FB) has been under today. Anthony believes today’s pressure comes largely from the latest lock-up expiration. The next round of lock-ups is set to expire next May. He is recommending that investors “buy the weakness” found in this stock right now to take advantage of bright expectations for the company in the coming year.
One of the main reasons he said now is the time to own shares of Facebook Inc (NASDAQ:FB) is because of the increasing revenue that can be made through mobile use of the social media site. Also Facebook is making great strides in the e-commerce sphere with its Gifts feature, and other e-commerce features are expected in the future. By 2014 he believes Facebook could generate significant revenues in e-commerce.
In addition Topeka Capital analysts see the social media giant being able to generate billions in revenue every year from a search engine. They also see Facebook Exchange ads as a promising revenue stream for the company. Also other news about the company are making the season brighter for the stock, its monetization of Instagram and the possibility that Facebook Inc (NASDAQ:FB) will be added to the S&P 500 late next year.
Topeka Capital has set its price target at $36 per share.